Thursday, 18 January 2024

Stocks Buyers Remorse As CBs Strike Back.

Baltic Dry Index. 1308 -16            Brent Crude  78.30

Spot Gold 2011                  US 2 Year Yield 4.34 +0.12

 

There are men running governments who shouldn't be allowed to play with matches.

Will Rogers.

In the global stock casinos, more buyer’s remorse as the central banksters pour cold water on early and many interest rate cuts in 2024.

Who knew Wall Street didn’t have the Fedster’s trapped over a barrel after all.


Hong Kong stocks extend sell-off, China shares languish near 5-year lows

UPDATED THU, JAN 18 2024 12:41 AM EST

Hong Kong stocks rebounded Thursday, while mainland China shares languished near five-year lows.

The CSI 300 index was 0.94% lower, while Hong Kong’s Hang Seng index climbed 0.3%. Miners led sectoral declines on both the indexes.

It comes a day after data showed China’s economy expanded by 5.2% in the fourth quarter of 2023, missing Reuters poll estimates of 5.3% growth.

In Singapore, Transport Minister S Iswaran has resigned and faces 27 charges including for corruption, following months of investigations by the country’s anti-graft agency.

Australian markets extended their losses to a fifth straight day, with the S&P/ASX 200 falling 0.63% and closing at 7,346.5.

Japan’s Nikkei 225 slipped marginally, while the Topix was down 0.06%.

South Korea’s Kospi was hovering near the flatline, while and the small-cap Kosdaq rose 0.5%.

Overnight in the U.S., all three major indexes fell, with the Dow Jones Industrial Average recording a third straight day of losses.

The 30-stock Dow declined 0.25%, while the S&P 500 slid 0.56% and the Nasdaq Composite lost 0.59%.

Retail sales data for December came in stronger than expected, indicating a resilient consumer demand and putting aggressive rate cuts from the Federal Reserve into doubt.

Retail sales were up 0.6% from November, and gained 0.4% month over month, excluding autos. Economists polled by Dow Jones had estimated a 0.4% month-on-month increase in retail sales and 0.2% ex-autos.

Asia markets today: Live updates: Australia unemployment, China markets (cnbc.com)

European markets head for mixed open as banking officials at Davos temper rate cut expectations

UPDATED THU, JAN 18 2024 12:27 AM EST

European markets are heading for a mixed open Thursday as investors continue to monitor news and comments from the World Economic Forum in Davos, Switzerland.

A number of European central bank officials at Davos have been hawkish about interest rate cuts, warning that despite progress tackling inflation, markets have gotten ahead of themselves in terms of expectations for spring rate cuts.

More

European markets live updates: stocks, news, data and Davos (cnbc.com)

Stock futures are slip on Thursday after Dow posts third-straight losing day: Live updates

UPDATED THU, JAN 18 2024 12:22 AM EST

U.S. stock futures were little changed Thursday morinng after the Dow Jones Industrial Average notched a third-straight losing day.

Dow futures were down by 36 basis points, or 0.1%. S&P 500 futures and Nasdaq 100 futures also fell marginally below the flat line

Discover shares slid 9% in after-hours action. The credit card company reported that its net charge-off rate climbed during the fourth quarter compared to the prior year. Discover posted fourth-quarter revenue of $4.20 billion, topping estimates of $4.10 billion, according to analysts polled by LSEG.

Wall Street is coming off a losing session for the major averages, as Treasury yields rose. On Wednesday, the 30-stock Dow dropped 94.45 points, or 0.25%. The S&P 500 slid 0.56%, and the Nasdaq Composite lost 0.59%.

During the session, the 10-year Treasury yield topped 4.1%.

Investors worried that a strong December retail sales report, which suggests a robust consumer, could mean fewer rate cuts from the Federal Reserve than many are expecting. Currently, markets are pricing in a roughly 56% chance of a quarter percentage point rate cut in March, according to the CME FedWatch Tool.

“The fact that the Fed is not talking about raising rates is a good thing, but the fact that the market’s pricing six rate cuts is a problem,” Chris Toomey, managing director at Morgan Stanley, said on CNBC’s “Closing Bell” on Wednesday.

“If you look at the fourth quarter, so much of that performance was chasing, right, and chasing and chasing,” Toomey continued. “And now people are like, ‘Wait, do I really want to own this thing at this level?’ And if rates are starting to go higher, you’re going to get a lot of weak hands selling.”

On the economic front, weekly jobless claims are on deck Thursday morning, as are housing starts and building permits data. Atlanta Fed President Raphael Bostic is also set to speak.

Stock market today: Live updates (cnbc.com)

Next, the USA is on a glide path to national bankruptcy, like Argentina’s. The global economy as we know it is coming to an end. The Great Nixonian Error of Fiat Money is about to go boom.

 

The Eye-Popping Interest Payment Spike On Our National Debt

Combined net worth of nation's most prominent billionaires wouldn't cover a single year's interest payment, analysis shows

By  Spencer Lindquist  Jan 17, 2024 

The combined net worth of the most prominent billionaires in the United States would not be enough to pay a single year’s interest payment on America’s ballooning national debt, which currently stands at an astonishing $34 trillion.

The combined net worth of some of America’s most prominent billionaires, Elon Musk, Jeff Bezos, Mark Zuckerberg, Bill Gates, Ken Griffin, Mark Cuban, Ray Dalio, and George Soros, adds up to approximately $726 billion according to data compiled by the Bloomberg Billionaires Index. Meanwhile, the net interest on our national debt is currently at $730.8 billion, dwarfing the sum for previous years.

 

Interest payments on the United State’s national debt have risen sharply in recent years and remain on track to continue increasing. Net interest payments on the national debt hit a whopping $659 billion in fiscal year 2023, marking a massive 39% jump from 2022, when the government paid $475 billion in interest on the national debt.

The comparison signifies that increased taxation suggested by Democrats isn’t a viable path towards erasing the national debt, especially as interest payments pile up. The United States collected $4.4 trillion in federal taxes in fiscal year 2023, up from $4.19 trillion in fiscal year 2022, yet the debt increased by more than $2 trillion.

The debt interest payments continued to spike in October 2023, the first month of fiscal year 2024, when the government paid $76 billion on the national debt interest. The figure marked a shocking 77% increase from October 2022 when the government paid $43 billion on the interest.

Interest payments on the national debt are poised to reach an astonishing $1.4 trillion in just under a decade in fiscal year 2033, surging even higher to a projected $5.4 trillion in fiscal year 2053.

More

The Eye-Popping Interest Payment Spike On Our National Debt | The Daily Wire

Finally, more food price inflation ahead?

Winter weather snarls air, train travel across Europe

FRANKFURT/OSLO, Jan 17 (Reuters) - Freezing rain in central and southern Germany grounded hundreds of flights and limited train traffic on Wednesday, while heavy snowfall in Norway's capital led to the closure of its main airport.

Oslo airport said it would remain shut at least until 1330 GMT but the outage could also be extended. Germany's Frankfurt airport cancelled all its operations from midday as airplanes could no longer be de-iced, a spokesperson said.

After cancelling all departures from midday, no airplanes could land at Frankfurt airport from 1400 GMT, they said.

Around 600 of the 1,047 scheduled Frankfurt arrivals and departures had been cancelled earlier in the day. At Munich airport 254 flights were scratched and a smaller airport in the southern city of Saarbruecken ceased operations completely.

"This is extremely rare...there is so much snow that the pilots can't see the lights on the ground so we've halted all incoming and outgoing flights," said a spokesperson for Norway's national airport operator Avinor.

For passengers, the cancellations meant stress and changes in plans.

"I've had nothing but stress since yesterday," said Klaus Ludwig Fess standing in Frankfurt airport's departure lounge.

His initial flight and his rebooked one had been cancelled, he said.

"Now I'm taking the train to Berlin."

In Oslo, Bente Jensen, 66, was unable to even reach the airport for a return journey to her native Denmark as train services from the city centre were cancelled.

---- TRAINS DELAYED, HALTED

German rail operator Deutsche Bahn also warned of delays and cancellations because of winter weather, and said it was limiting the top speed for its high-speed ICE trains to 200 kph (124 mph) as a precautionary measure.

Its long distance services from Stuttgart and Frankfurt to Paris had been cancelled due to weather conditions in France, Deutsche Bahn said.

France's weather service warned of black ice in 25 regions and floods in three other areas this afternoon.

In Norway, trains stopped in some areas in the east of the country due to the weather conditions, train operator Bane Nor said.

In Germany, an extreme risk of black ice and heavy snowfall would remain through Thursday in the affected regions, its weather service said.

Numerous schools in Germany's centre and southern regions remained closed as on-site education was suspended for the day.

Winter weather snarls air, train travel across Europe | Reuters

 

Crop-killing weeds advance across US farmland as chemicals lose effectiveness

By Rod Nickel and Tom Polansek 

WINNIPEG, Manitoba/CHICAGO, Jan 16 (Reuters) - Crop-killing weeds such as kochia are advancing across the U.S. northern plains and Midwest, in the latest sign that weeds are developing resistance to chemicals faster than companies including Bayer (BAYGn.DE), opens new tab and Corteva (CTVA.N), opens new tab can develop new ones to fight them.

In many cases weeds are developing resistance against multiple herbicides, scientists said.

Reuters interviewed two dozen farmers, scientists, weed specialists and company executives and reviewed eight academic papers published since 2021 which described how kochia, waterhemp, giant ragweed and other weeds are squeezing out crops in North Dakota, Iowa, Wisconsin and Minnesota as chemicals lose their effectiveness.

Over the last two decades, chemical companies have reduced the share of revenue devoted to research and development spending and are introducing fewer products, according to AgbioInvestor, a UK-based firm that analyzes the crop protection sector.

Farmers say their losing battle with weeds threatens grain and oilseed harvests at a time when growers are grappling with inflation and extreme weather linked to climate change.

"We're in for big problems over the next 10 years for sure," said Ian Heap, director of the International Survey of Herbicide Resistant Weeds, a group of scientists in over 80 countries that maintains a global database. "We are in for a real shake-up."

The database records reduced effectiveness for glyphosate, one of the most common herbicides, against 361 weed species, including 180 in the U.S., affecting corn, soy, sugar beets and other crops.

More

Crop-killing weeds advance across US farmland as chemicals lose effectiveness | Reuters

I like thieves. Some of my best friends are thieves. Why, just last week we had the president of the bank over for dinner.

 

W. C. Fields.

Global Inflation/Stagflation/Recession Watch.

Given our Magic Money Tree central banksters and our spendthrift politicians, inflation now needs an entire section of its own.

Business heads see Red Sea tensions causing lengthy trade dislocation

January 17, 2024

(Reuters) - Business chiefs warned on Wednesday that disruption to shipping in the Red Sea caused by attacks by Houthi militants in Yemen could affect supply chains for months and lead to a shortage of tankers needed to transport fuel.

Attacks by the Iran-allied Houthi militia on ships in the region since November have slowed trade between Asia and Europe and alarmed major powers -- an escalation of Israel's more than three-month-old war with Palestinian Hamas militants in Gaza.

The Houthis say they are acting in solidarity with Palestinians and have threatened to expand attacks to include U.S. ships in response to American and British strikes on their sites in Yemen.

Maersk and other large shipping lines have instructed hundreds of commercial vessels to stay clear of the Red Sea, sending them on a longer route around Africa or pausing until the safety of vessels can be assured.

"This is extremely disruptive because you have close to 20% of global trade that transits through the Bab al-Mandab Strait (to the Red Sea)," said Maersk CEO Vincent Clerc.

"It's one of the most important arteries of global trade and global supply chains and it's clogged up right now," he told Reuters Global Markets Forum in Davos.

Freight rates have more than doubled since early December, according to maritime consultancy Drewry's world container index, while insurance sources say war risk premiums for shipments through the Red Sea are also rising.

Banking executives have said they were worried the crisis might create inflationary pressures that could ultimately delay or reverse interest rate cuts.

U.S. STRIKES

The alternative shipping route around South Africa's Cape of Good Hope can add 10-14 days to a journey when compared to a passage via the Red Sea to the Suez Canal.

Prolonged attacks by the Houthis on ships would lead to a shortage of tankers, the CEO of Saudi oil giant Aramco said.

"If it's in the short term, tankers might be available ... But if it's longer term, it might be a problem," CEO Amin Nasser said in an interview on the sidelines of the World Economic Forum in the Swiss ski resort of Davos.

More

Business heads see Red Sea tensions causing lengthy trade dislocation (msn.com)

Britain's unexpected inflation increase in December is unlikely to worry the Bank of England

January 17, 2024

Inflation across the United Kingdom increased unexpectedly last month as a result of sharp hikes in tobacco and alcohol prices, according to official figures released Wednesday.

Economists said it was unlikely to prompt concern at the Bank of England, which recently ended nearly two years of interest rate increases.

The Office for National Statistics said inflation, as measured by the consumer prices index, was 4% in December, up from 3.9% the month before, the first increase in 10 months.

Most economists had expected the rate to edge lower to 3.8%.

Despite the increase, inflation remains significantly lower at the end of 2023 than at the start of last year, when it stood above 10%.

The increase is unlikely to cause too much concern among rate-setters at the Bank of England as inflation is below where it expected it to be.

“This serves as reminder that bumps in the lower inflation road are inevitable, but does not change the big picture that price rises are coming in much lower than the Bank of England expected as recently as November,” said Lalitha Try, economist at the Resolution Foundation.

After the Bank of England in August left its main interest rate unchanged at a 15-year high of 5.25%, speculation mounted it could soon start cutting borrowing rates in light of recent sharp falls in inflation.

The Bank of England has managed to get inflation down from a four-decade high of more than 11%, but there's still a way to go to reach its target of 2%. But with food and energy prices trending lower, there are hopes it could meet the target this year, and start reducing interest rates.

More

Britain's unexpected inflation increase in December is unlikely to worry the Bank of England (msn.com)

 

Covid-19 Corner

This section will continue until it becomes unneeded.

Ask A Doctor: How Does Low Temperature Affect The Transmission And Spread Of Infectious Diseases, Such As Covid-19?

January 17, 2024

Expert opinion from Dr. Alan Thomas Charly

MBBS · 1 years of experience · India

Low temperatures can have an impact on the transmission and spread of infectious diseases such as Covid-19Cold weather frequently forces individuals indoors, where close contact and inadequate ventilation increase the risk of virus transmission. Low temperatures may also contribute to a drier interior atmosphere, allowing respiratory droplets containing the virus to remain suspended in the air for extended periods. Other elements, such as humidity and human behaviour, do, however, play important roles in disease propagation. To reduce this risk, it is critical to maintain following public health measures, such as mask use, social separation, and immunisation, regardless of the temperature.

More

Ask A Doctor: How Does Low Temperature Affect The Transmission And Spread Of Infectious Diseases, Such As Covid-19? (msn.com)

Technology Update.

With events happening fast in the development of solar power and graphene, among other things, I’ve added this section. Updates as they get reported.

Betavolt says its diamond nuclear battery can power devices for 50 years

David Szondy  January 16, 2024

China's Betavolt New Energy Technology has unveiled a new modular nuclear battery that uses a combination of a nickel-63 (⁶³Ni) radioactive isotope and a 4th-generation diamond semiconductor and can power a device for 50 years.

Nuclear batteries may sound like something super-advanced, but they've been around in one form or another since the early 1950s. Most of these are what are called radio-thermal generators, which turn the heat from decaying radioactive elements into electricity by some sort of thermocouple or a Stirling engine.

In 2016, a new principle was introduced, which uses diamond layers doped with radioactive isotopes – in the case of the first attempt, carbon-14 (¹⁴C). The idea is to select an isotope that releases Beta (β⁻) particles, which are essentially high-energy, high-speed electrons or positrons. When these are released, the diamond matrix acts as a semiconductor to generate an electric current.

Betavolt's new battery, called the BV100, uses two single-crystal diamond semiconductor layers with a thickness of 10 microns each sandwiching a 2-micron layer of ⁶³Ni. Each one of these sandwiches can produce current, but they can also be stacked or linked like old-fashioned voltaic cells to form hundreds of independent unit modules that work together to boost the current.

The whole thing is sealed in a protective case to shield against radiation exposure and to protect the battery against physical damage. The BV100 can produce 100 microwatts at 3 volts and measures 15 x 15 x 5 mm. Beavolt estimates that such batteries could one day power a mobile phone so it never needs recharging or keep a small drone in the air indefinitely.

According to the company, the BV100 is in pilot production with an eye on mass production. A larger one-watt version is expected in 2025. The energy density of the BV100 is rated at 10 times that of lithium batteries and is not prone to fire or explosions. Since it generates electricity rather than stores it in the form of chemical reactions, it is not subject to recharging cycle problems. The ⁶³Ni eventually decays into non-radioactive copper that poses a minimal environmental risk.

Betavolt says its diamond nuclear battery can power devices for 50 years (newatlas.com)

Scale it up for useless EVs.

Electric Car Owners Confront a Harsh Foe: Cold Weather

January 17, 2024

With Chicago temperatures sinking below zero, electric vehicle charging stations have become scenes of desperation: depleted batteries, confrontational drivers and lines stretching out onto the street.

“When it’s cold like this, cars aren’t functioning well, chargers aren’t functioning well, and people don’t function so well either,” said Javed Spencer, an Uber driver who said he had done little else in the last three days besides charge his rented Chevy Bolt and worry about being stranded with a dead battery — again.

Mr. Spencer, 27, said he set out on Sunday for a charging station with 30 miles left on his battery. Within minutes, the battery was dead. He had to have the car towed to the station.

“When I finally plugged it in, it wasn’t getting any charge,” he said. Recharging the battery, which usually takes Mr. Spencer an hour, took five hours.

With more people owning electric vehicles than ever before, cold snaps this winter have created headaches for electric vehicle owners, as freezing temperatures drain batteries and reduce driving range.

And the problems may persist a little longer. Chicago and other parts of the United States and Canada this week have been stunned by bitterly cold temperatures. On Tuesday, wind chills plummeted near -30 degrees across much of the Chicago area, according to the National Weather Service. Dangerously low temperatures and waves of snow are expected to stick through the end of the week.

 

---- In a painfully chilly parking lot in Chicago on Tuesday, Tesla drivers huddled in their cars waiting for a charge.

That morning, Nick Sethi, a 35-year-old engineer in Chicago, said he had found his Tesla frozen shut. He spent an hour in minus 5-degree temperatures struggling with the locks.

Finally, he was able to chisel out the embedded trunk handle to open it, clambering in and driving his Model Y Long Range S.U.V. five miles to the closet supercharging station. He joined a long line of Tesla drivers.

More

Electric Car Owners Confront a Harsh Foe: Cold Weather – DNyuz

Long ago when men cursed and beat the ground with sticks, it was called witchcraft. Today it's called golf.

Will Rogers.


No comments:

Post a Comment